UPP Group Holdings Limited (UPP), the UK’s leading provider of on-campus student accommodation infrastructure, has secured a £110 million ($138 million) sustainability-linked revolving credit facility (RCF) with Deutsche Bank. The deal marks UPP’s first sustainability-linked financing and reinforces its commitment to environmental and operational sustainability across its 35,000-room portfolio.
The facility integrates key performance indicators (KPIs) tied to carbon reduction, water consumption, and biodiversity net gain. The cost of funding is directly linked to UPP achieving these ambitious sustainability goals, aligning financial performance with environmental impact.
Simon Boorne, UPP’s Chief Investment Officer said, “I’m delighted to have completed this financing that is integral to furthering UPP’s growth ambitions sustainably. This marks our first sustainability-linked financing, which reinforces our corporate commitment to enhancing the sustainability of our existing portfolio and delivering new accommodation schemes with sustainability at their core.”
Deutsche Bank, which aims to raise €500 billion in sustainable finance by 2025, played a central role in facilitating the transaction. Dmitry Buyanovsky, Vice President, FIC Rates, CSS ICE stated, “We are delighted to have been able to provide UPP with this Sustainability-Linked Loan. This transaction showcases Deutsche Bank’s market presence and growing footprint in supporting public institutions.”
Oyumaa de Jong, Vice President, ESG Solutions, FIC, highlighted UPP’s focus on biodiversity and said, “One of UPP’s ESG targets is focused on delivering on the UK’s new Biodiversity Net Gain regulation, which is one of the first of its kind. UPP is exceeding BNG: instead of focusing purely on new housing developments, they intend to increase biodiversity across their entire portfolio.”
